Asian Stocks Rise on Tech Boost, China Falls on Trump’s Tariff Threat
Most Asian stocks rose on Wednesday, led by technology shares, after OpenAI announced a massive partnership to build artificial intelligence infrastructure in the US. However, Chinese markets fell sharply after US President Donald Trump raised the prospect of increased trade tariffs on the country by as soon as February.
The tech-heavy Asian bourses were the best performers, with Japan’s Nikkei index adding 1.5% and South Korea’s Kospi index rising 0.6%. Chipmaking stocks, including Advantest Corp., Tokyo Electron Ltd., and SK Hynix Inc., rose between 2.2% and 4%. SoftBank Group Corp., a key partner in the new OpenAI venture, rallied over 7%, while Taiwan Semiconductor Manufacturing Co. (TSMC) rose over 2% in Taiwan trade.
The optimism towards tech was boosted by OpenAI’s announcement of a $500 billion venture to build critical AI infrastructure in the US, which will involve several major tech companies, including Microsoft, NVIDIA, and Oracle. The venture, called “Stargate,” is likely to boost demand for AI chips and data center infrastructure, benefiting several Asian firms that make up a key part of the supply chain.
Other Asian markets were mostly upbeat, tracking overnight strength in Wall Street. Australia’s S&P/ASX 200 index added 0.4%, while South Korea’s Kospi index rose 0.1%. Futures for India’s Nifty 50 index pointed to a mildly positive open, after the index slumped over 1% on Tuesday.
However, Chinese shares fell sharply, with the Shanghai Composite index falling 0.9%, the Shenzhen Composite index shedding 0.8%, and the Hang Seng index in Hong Kong falling 1.3%. Trump’s comments on Tuesday kept fears of a trade war squarely in play, with markets initially seeing some relief from Trump not imposing any tariffs on day one of his presidency.